In the last 50 years winter sport became a major economical size in mountain regions, especially in the European Alps and the Rocky Mountains. Until 1979 a lot of new ski resorts were developed. At the beginning of the 80´s the politicians intervened in the wild extension in the Alps and organized the development of this natural space. The rapid expansion was finished.1 In the 80´s and 90´s, the enterprises began to integrate further parts of the value chain. Pure lift operators became big ski resort companies. From the beginning of the 90´s the growth of winter sportsmen stagnated.2 In total there are about 32 million skiers in Europe.3 Nowadays it is nearly impossible to open new resorts. Consequently the ski resort companies are more asked to improve their services, make up combinations with other resorts, built up co- operations or downsize the companies to compete with other ski resorts in the mountains. This market is really hard battled and the suppliers try to find their niches like family-, pure sport- or snowboard resorts. They started to concentrate on their core competencies at the end of the 90´s and invested huge amounts of money to upgrade the important transport possibilities like chair lifts or gondolas in the whole resorts. Most of the smaller and middle sized ski resorts work with deficit.4 This made it extremely important in the 90´s for businesses to introduce new divisions in the organizational structure to control and support the management.5 Nowadays only about 50 percent of the ski resorts know Controlling as a division of the management; therefore they often invest money without knowing the affects of it.6 The increasing importance of Controlling in ski resorts is shown by the fact that PwC Switzerland has got an own team for this subject. Due to the shortness of this seminar paper there is only a coarse outline of the subject with a focal point on medium and big sized companies represented with it.
Table of Contents
1. Introduction
2. Features of ski resorts
3. Structure of the controlling in ski resorts
3.1 Strategic and Operative Controlling
3.1.1 Strategic Controlling
3.1.2 Operative Controlling
3.2 Controlling in the organizational structure
3.3 Controlling process in ski resorts
3.3.1 Timing
3.3.2 Planning course in ski resorts
3.4 Costing and revenue accounting
3.4.1 Cost sections
3.4.2 Cost system
3.4.3 Revenue accounting
4. Controlling-tools
4.1 Marginal costing
4.2 Activity based costing
4.3 Capital budgeting
4.4 Benchmarking
4.5 Yield management
4.6 Further tools
5. Information resource Management
5.1 Electronic Data Processing (EDP)
5.2 Reporting and ratios
6. Conclusion
Objectives and Topics
This paper examines the role and implementation of controlling within ski resort management. It aims to provide an overview of how specialized controlling systems can support the operational and strategic decision-making processes in medium and large-sized ski resort companies facing high fixed costs and seasonal demand fluctuations.
- Analysis of specific economic features and cost structures of ski resorts.
- Differentiation between strategic and operative controlling functions.
- Evaluation of controlling instruments such as benchmarking, capital budgeting, and yield management.
- Optimization of reporting structures and information management systems.
- Strategies for managing financial performance and long-term sustainability.
Excerpt from the Book
3.1.1 Strategic Controlling
Strategies are considered procedures for reaching the set goals. It includes the planning of the mission and vision of the company. Strategies have got a future and qualitative character, strengths and weaknesses are in the focus. It is vital to find future potentials to reach a better position in the market and to secure the lasting growth of the (ski resort) company. The temporal spectrum is long-span, but it also affects the current situation. For that reason the importance of identifying future impacts is given. This could be exemplary the enlargement of the catchment area, like the strategy of the Salzburger Land. They started to cooperate with Russian ski resorts nearby Moscow to generate new customer groups. This new distribution market is very important for the future of this area.
The field of Controlling works in this part with empirical values, product life cycles and scenario techniques. It is also important to plan the accurate investments with capital budgeting as they have got a long term amortization. The aim is to arm the ski resort company planning based against all contingencies.
Summary of Chapters
1. Introduction: Outlines the historical development of ski tourism and the increasing necessity for professional management and controlling due to market saturation and financial challenges.
2. Features of ski resorts: Describes the complex system of ski resorts, focusing on their high fixed costs, seasonal demand, and the dependency on uncontrollable factors like weather.
3. Structure of the controlling in ski resorts: Details the conceptual framework of controlling, covering strategic and operative planning, organizational integration, and specialized accounting methods.
4. Controlling-tools: Presents various management instruments, including marginal and activity-based costing, capital budgeting, benchmarking, and yield management techniques.
5. Information resource Management: Discusses the importance of EDP systems and structured reporting for providing meaningful data to decision-makers.
6. Conclusion: Summarizes that implementing professional controlling is essential for survival and profitability in an increasingly competitive European ski resort market.
Keywords
Ski Resorts, Controlling, Strategic Controlling, Operative Controlling, Benchmarking, Yield Management, Capital Budgeting, Marginal Costing, Cost Sections, Business Planning, Financial Accounting, Seasonal Tourism, Information Management, Cost-benefit Analysis, Market Strategy
Frequently Asked Questions
What is the primary focus of this paper?
The paper focuses on the application of controlling as a management tool to enhance the operational and financial efficiency of ski resorts, particularly within the context of medium and large-sized companies.
What are the central challenges for ski resort companies?
The central challenges include high fixed infrastructure costs, significant seasonal fluctuations in demand, and the need to optimize revenue in a highly competitive market environment.
What is the primary objective of the research?
The objective is to provide a coarse outline of how to integrate controlling into ski resort management to bridge the gap between costs and revenues, thereby securing long-term growth.
Which scientific methods are primarily discussed?
The paper analyzes several management instruments such as marginal costing, activity-based costing, capital budgeting, benchmarking, and yield management as part of a modern controlling system.
What topics are covered in the main section?
The main section covers the organizational structure of controlling, the definition of cost sections, the implementation of controlling tools, and the importance of efficient IT and reporting systems.
Which keywords best characterize this work?
Key terms include controlling, ski resort management, yield management, benchmarking, capital budgeting, and operational planning.
How is the capital budgeting process described for ski lifts?
Capital budgeting is described as a critical task because of the massive, long-term investments required for infrastructure like lifts and snowmaking equipment, which carry significant risk if not evaluated through multi-year scenarios.
How does weather affect the controlling process?
Weather is identified as the most crucial, yet uncontrollable, factor influencing demand and yield. Controlling systems must account for these variations when comparing planned versus actual performance to allow management to respond appropriately.
- Quote paper
- Daniel Effenberger (Author), 2004, Controlling in ski resorts, Munich, GRIN Verlag, https://www.grin.com/document/35725
